One of the many details involved in a bankruptcy case is known as the "proof of claim." What is this proof of claim? After a borrower has filed for bankruptcy, the creditor will submit their document stating why they are owed money. These documents are found on the site of the United States Courts. By filing this proof a creditor is attempting to stake a claim on the assets in a bankruptcy estate dating up to the time when the borrower filed.
In some cases, secured creditors will not have to file the proof of claim. For unsecured creditors it will be necessary for this to be filed in Chapter 13 and Chapter 7 cases for the claim to be allowed. Non-governmental creditors will need to file the proof within 90 days from the time of an initial meeting in Chapter 7 and Chapter 13 cases. Creditors that are with the government will have 180 days to file from the time of the order for relief. The proof will need to conform with the standards that are set in the Official Bankruptcy Form 10. If there are any documents that exist that would support the creditor's case then they will submit those.
Some courts will allow for an informal proof but it will need to meet certain guidelines for them to allow it. A party in interest includes those with a financial stake in the results of the proof and these individuals can have the ability to object to the claim. Claims may be approved or rejected for various reasons. Reasons for objection include if the creditor filed for the purpose of harassing a debtor, if the claim has false information or if there were not sufficient supporting documents attached. This is just one of many aspects of the bankruptcy Due to the complex nature of filing, not having legal representation can often set you back. Work with our Long Island bankruptcy attorney to maximize the results of your case.